19 Oct 2020
Posted in Medical Devices
Johnson and Johnson’s Q3 results bode well for rapid medical device sales recovery in Q4 and into 2021
Following the recent release of Johnson and Johnson’s Q3 2020 financial results;
Dominic Tong, Medical Device Analyst at GlobalData, a leading data and analytics company, offers his view:
“Johnson and Johnson’s better than-expected-performance across multiple segments is reflective of the quick recovery seen across medical device manufacturers.
“While the company’s Q3 medical device sales were down 3.6% year-over-year (YOY), this is a significant improvement – given that Q2 sales were down over 30% YOY.
“The recovery seen in the US medical device segment, amid the ongoing spread of COVID-19, bodes well for a rapid recovery in Q4 and into 2021. GlobalData currently expects the US hip reconstruction market, in which Johnson and Johnson is a major player, to fall nearly 20% in 2020 due to the impacts of the virus. The early financial reports suggest that this company is not yet seeing such significant impact, and in some markets, like Tissue Sealants and Adhesives, the company has returned to growth this quarter while GlobalData expected a nearly 10% decline in 2020. However, the rising case numbers may lead the government to, yet again, postpone elective surgeries – which may dampen near future results.
“While moves to lower COVID-19 case numbers such as placing limits on elective procedures would slow recovery in the short term, it also may allow healthcare providers to return to normalcy sooner once the COVID-19 spread is under control.”